External Guarantees The Legal System Of Listed Companies Studied

Security, as a legal rule with a long history, provides us with insurance in the realization of both obligatory rights and obligations. With the development of human society and commodity economy, it's becoming more and more usual to make security by methods cohering with this economy and demands of credit in it, while unusual by personal living bodies. Still, the new practice is growing to perfect.Capitalist mode of production brought births to firms. With the development of commodity economy and legislators' deliberate designs on their system of organization, firms have been expanding hastily and globally. Also, it has become an issue confronting us whether listed firms are qualified as a security.Before our further legal probing into the problem of Chinese listed firms' being security to foreign countries, we have to make it clear first whether a listed firm is qualified as a security. Having aroused a wide-expanded argument in China, this question becomes one of the theoretical puzzles in the laws of firms and security. It's a popular practice to make security irrationally in currant China, which goes against the original intentions and values of security, and therefore, is doing great harms to the benefits of listed firms and creditors. The author holds that we should intensify the internal management of listed firms after giving recognition to them and strengthen creditors' management to security to guard against risks.As a significant legal rule to protect creditors, security has made great contribution to the developing of commercial trade, the peace of markets and the balance of risks of different involvers. We law workers should lay our attention on perfecting this legal rule and making it a system linked closer together within itself and to the real life. The author firmly believes that all these problems arising in the development of commercial economy will get reasonable settlements with the progressing of legislation. Still, security shall guide us against hardships as a bright lamp if needed.